In case you missed yesterday’s Next Level Purchasing Association monthly member’s webinar yesterday, I thought I’d post a few highlights here. And there were many highlights due to the fantastic presentation from ClearEdge Partners‘ Tom Demarco. Some excerpts from Tom’s sage advice…

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  • On incumbent supplier’s inflexibility with pricing: “They know you won’t leave them unless you’ve kicked the tires with someone else.”
  • On the three things an organization needs to do if it wants to have any leverage when negotiating with IT suppliers: “Play early, have supplier intelligence, [and] act as one team.” If you deploy these negotiation strategies, you will be “a shark against a shark” not a guppy against a shark.
  • On what you should train your IT counterparts to say to suppliers when they ask what are the business drivers prompting the procurement process: “I really don’t know. I’m just here to validate the technology.”
  • On the goal of a salesperson: “Know you’ve won the transaction before negotiating.”
  • On why salespeople are so adept at controlling sales processes: “US enterprises spent $6 billion training sales professionals in 2007.” (Source cited: ES Research Group, 2008 Sales Training Vendor Guide)
  • On testimony given by a large IT firm during anti-trust hearings: The CEO said that they charge what they think their customers are willing to pay.
  • On the need to structure the procurement process before it begins: “You have to start early. You cannot start at the time that you need the technology.”
  • On clues that salespeople look for in order to resist procurement negotiation tactics: “If I know you have a $3 million problem, you’ll never get me down to $50,000.”
  • On why procurement departments need to have a negotiation plan for their big IT suppliers: “Almost every supplier that views your transaction as strategic to them has a playbook on you.”

Keep an eye out for the August NLPA webinar to be announced soon! Not a member? Click here to join – it’s FREE!

To Your Career,
Charles Dominick, SPSM, SPSM2
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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